Honda to double investment in electric vehicles and software

Honda is sticking to its strategy of focusing more on electric vehicles in the coming years, the head of the company said Thursday, despite a recent slowdown in sales in several markets possibly clouding the outlook for demand.

The automaker had planned to invest ¥5 trillion ($32.3 billion) in EVs and software for the 10 years through March 2031, but in an indication of its commitment, Honda now plans to spend ¥10 trillion by that point.

While the demand for battery EVs appears to have leveled off recently, “we have not changed our view that EVs are the best solution (for realizing carbon neutrality). … In the longer term, we are certain that the shift to EVs will surely progress,” Honda CEO Toshihiro Mibe said during a news conference.